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Wednesday, May 15, 2024

Mackinac Center for Public Policy cautions lawmakers against corporate welfare and increased taxes

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The Mackinac Center for Public Policy offers a few suggestions for the state of Michigan heading into 2021. | Pixabay

The Mackinac Center for Public Policy offers a few suggestions for the state of Michigan heading into 2021. | Pixabay

As Michigan’s lawmakers begin to hammer out policies in the new legislative session, the Mackinac Center for Public Policy is seeking to encourage them to consider lessons that have been learned during the COVID-19 pandemic.

The 2021 Policy Recommendations place emphasis on themes common to the Mackinac Center’s ongoing concerns, such as corporate welfare and excessive regulation. However, the 2021 recommendations cast these perennial issues in a new light based on the events of the past year.

Some of the recommendations address problems that are more pronounced due to the crisis, while others hold up examples of the positive effects of actions taken during the pandemic as evidence that temporary measures should be extended or made permanent.

In terms of regulatory reforms, the Mackinac Center’s 2021 recommendations suggest that the temporary halt to scope-of-practice and certificate-of-need laws enacted by Gov. Gretchen Whitmer to eliminate some regulatory roadblocks within health care could be made permanent. The Mackinac Center asserts that regulatory hurdles that were lowered by Whitmer’s temporary order have been shown to be unnecessary.

“These restrictions should continue to be suspended during public health emergencies to relieve stress on the overall system and considered for more permanent loosening or repeal,” the Mackinac Center says.

In terms of potential problems, the flow of public funds meant to stem losses to the economic crisis created by COVID-19 restrictions could invite corporate welfare, which should be avoided. “Ineffective corporate welfare programs are harmful to Michigan’s overall business climate,” according to the Mackinac Center.

On the other side of the government coin, the Mackinac Center also cautions against the temptation to raise taxes as Michiganders continue to struggle to recover from the crisis. “Taxpayers, including countless businesses, have suffered financially as a result of the pandemic and government shutdowns, and policymakers should not add to that suffering with higher taxes,” website states.

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